Wednesday, January 23, 2008

How to fix the recession

Bob Reich thinks that "our only real hope for avoiding a deep recession or worse depends on loans and investments from abroad -- some major U.S. financial firms have already gotten key cash infusions from foreign governments buying stakes in them -- combined with export earnings as the dollar continues to weaken."

The Urban-Brookings Tax Policy Center's Len Burman argues that making the Bush tax cuts expire sooner than most Democrats want would actually help the economy, since it would encourage stock sell offs (at a lower capital gains rate) and then direct that capital into consumption.